Employees in the bay and NYC have more opportunities and thus more negotiating leverage. It doesn’t mean they’re better at the work. Hiring in competitive locales does mean more brain space dedicated to “how do I retain this employee” and less brain space dedicated to “how can I make my customers happy and grow my business” which is a losing trade. The winning play is pay top of market rates to labor in low cost locales, and if the people you hire don’t work out then fire them quickly because you’re paying top if market and there is a lot of talent liquidity in that band. It’s the Netflix model, but global. Not really a new playbook.